On May 19, 2026, the U.S. Department of Education (Department) published a final rule implementing two provisions of the Working Families Tax Cuts Act (the Act): establishment of new Workforce Pell Grants and new provisions that make students ineligible for Federal Pell Grants if they receive nonfederal aid in an amount that equals or exceeds their cost of attendance. Several institutions have asked for further clarification of the effective date of the provisions in this final rule.
The statutory effective date for these two provisions of the Act is July 1, 2026.
Institutions may apply for Department approval of an eligible workforce program beginning on July 1, 2026.
Provisions related to Pell Grant ineligibility due to receipt of nonfederal grant or scholarship assistance, including changes to 34 CFR 690.5 and 34 CFR 690.80(d), are effective for award years beginning on or after July 1, 2026, and as such apply to any crossover payment period that an institution assigns to the 2026–27 Award Year.
In reviewing the Department’s text on the application of the effective date to the crossover payment period, the Federal Register incorrectly assumed this was intended to be an effective date of May 19, 2026. The Department plans to issue a technical correction in the Federal Register clarifying this effective date language.
SOURCE: GENERAL-26-32